Paraguay's awful history: The never-ending war | The Economist

In the mid-1800s, however, Paraguay was a middling regional power. It began a breakneck industrialisation during the presidency of Carlos Antonio López, who imported European experts to build a shipyard, a foundry and one of South America’s first railways. He also beefed up the army to deter Paraguay’s twitchy neighbours: Argentina considered the country a rebel province until 1852, while Pedro II, the Brazilian emperor, claimed lands that Spain and Portugal had disputed.